Wednesday, January 3, 2007

Mahansaria, Warburg to buy Israel’s Alliance Tyre

Brothers Yogeshkumar and Ashokkumar Mahansaria, one of the promoters of Balkrishna Industries Limited (BIL), are quitting the tyre company owing to family differences. They have tied up with private equity firm Warburg Pincus to acquire Israeli tyre company Alliance Tyre for $45 mn. The transaction is expected to be completed before June 2007.

Alliance started negotiations with the two buyers, which will include an open offer for the public’s shares. The Mahansarias will float a new venture this year and the Alliance acquisition is a part of this move.

The management of Balkrishna Industries are not involved in the Alliance deal.

Read the article in Daily News and Analysis.

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